"Data is a precious thing and will last longer than the systems themselves."
Sverica International Announces Sale of Pivot Data Centres to Rogers Communications
martinwolf Transaction Analysis
- Total Transaction Size: CAD 155 million (USD 150.7 million)
- Implied Enterprise Value: CAD 155 million (USD 150.7 million)
- Combined Revenue (Approx): CAD 30 million (USD 29.2 million)*
- Implied EV/Revenue (Approx): 5.4x*
- Transaction Structure: Cash
- Rogers Communications (NYSE: RCI) announced yesterday that it is acquiring Pivot Data Centres from private equity investment firm Sverica for CAD 155 Million.
- Pivot operates three colocation facilities in Calgary and Edmonton, and specializes in data center design, maintenance and relocation.
- Sverica acquired a controlling interest in Pivot in November 2009 when it was operating under the name Care Factor Computer Services, Inc.
- Rogers also announced yesterday the acquisition of Granite Networks, a data center company based in Ottowa, for CAD 6.25 million.
- These acquisitions follow Rogers’ CAD 200 million purchase of BLACKIRON Data in April 2013, and will allow BLACKIRON to offer Tier III data centers in Ottawa, Toronto, Edmonton and Calgary.
- All three businesses will come together and position Rogers Business Solutions as a leader in data center services and create new opportunities for data center acquisitions.
Data centers in demand
- Data center infrastructure is in demand as enterprises move to the cloud and as operators seek to distinguish themselves from their competitors. The message is size and customer base matter when creating competitive advantage and business value.
- Rogers is playing catch-up as it works to bolster its cloud services offerings as a means of diversifying its market presence and remaining competitive.
- Other recent acquisitions of cloud services companies include:
- Inorganic growth is especially attractive given its ease and high rewards – the lending climate is friendly due to the low interest rates and, once acquired, customers face high barriers to exit.
- These acquisitions further show the attraction of offering a “one-stop shop” for customers seeking service providers that can offer them an end-to-end solution for all of their services needs.
For more information, see the press release. martinwolf was not the advisor in this transaction.
*Includes revenue from Pivot and Granite Networks.